The Theory And Practice Research Of Total Budget Management In Telecom Enterprise

As an important component of the modern enterprise's management system, total budget management plays a key role in the development of modern industrial and commercial enterprises, owing to it is the important means to achieve short-term business objectives and implement the management of strategic objectives, and it is one of the few management control methods which can integrate the all organization's issues into a system. Enterprises can take advantage of the total budget management as an system method to implement the annual business objectives and configures the enterprise's resources including human resources, material, financial or other resources, eventually achieve the situation called as "Preparedness ensures success, unpreparedness spells failure."This paper holds that the total budget management in telecomm companies should take the strategies as the core, and take value-creation as the purpose. Also, it should be focused on projects, and make the resources as the main line for cost decomposition and control, and the dimensions system for budgeting and tracing. It has run beyond the traditional scope of the financial budget, closely linked and coordinated with the forecasting, planning, budgeting, reporting and performance through the target system. It combines series of the theories such as the total budget management, the activity-based budget, the Balanced Scorecard, benchmarking, project management and so on, covering the strategic connection(Strategic Budgeting), the annual budgeting (focused on operating expenses budget ), budget summary and decomposition , budget execution and control, budget adjustments, budget analysis and reporting, budget performance appraisal and so on. As an important means of strategic budgeting, the Balanced Scorecard realizes the effective convergence between the strategy and the budget management. As the base for operating budgeting, the project-based business activities planning fully shows the advantages of activity-based budget and promotes the organic integration between the budget management operating cycle and the financial cycle .The project-based management and control mode opened up a new path for the execution and control for enterprise's project management and daily operation management.Based on the description and analysis of the above theories, combining with ZM Company's empirical case study, this paper try to structure a theoretical framework for the total budget management based on the value creation with SBP (strategy, budget, performance) cycle. Furthermore, this paper put forward an information construction solution for telecom enterprise, based on the implementation experience with ZM Company's total budget management project.